Crypto portfolio update

Exposure: 50.1%

Net return: 595.9%

Comments: BTC volatility has flatlined over the past week and market participants are eagerly awaiting the next narrative to breathe some life into the market.

Minor altcoin/memecoin pumps aside, there's nothing much going on and people are getting bored...

So this is the part of the cycle where the last of the non-serious participants start capitulating and dropping out of the industry to "focus on other things".

I hold the opposite view; I think now is the time to pay extra attention to crypto as I believe the next few months will determine the ultimate bottom of the bear market.

In a bullish scenario, I'd expect something like this:

On the other hand, this is how I see a bearish scenario playing out:

"Duh... So you're saying the price can move up or down."

Well, yes... but that's not the important part. 

The important part is knowing how to allocate your portfolio in light of these projections. It can mean the difference of as much as 3x-ing your future returns (ie. whether you end up making $400k or $1.2M).

My portfolio is skewed towards a more bullish stance... but the outlook can change at the drop of a hat so join the private group to stay on top of my latest views and portfolio breakdown.

Current allocation:

 Ledger drama

In the latest Ledger Nano X firmware patch, the device now offers a "private key recovery solution" by sending various parts of your private key data to multiple corporate providers.

This has triggered a backlash in the crypto community because this new "feature" (1) introduces major exploit risks and (2) requires KYC (getting doxxed).

You can read more about it here.

In my view, the only legitimate concerns are:

• The device's code is not open source, so you have to trust the Ledger company (1) not to act against your interest, and to (2) be competent enough to keep your private key secure (related note: they suffered a major data breach in 2020)
• If you use the "private key recovery solution", the government can subpoena the corporate providers to access to your wallet

So while there are no immediate security concerns, the Ledger company's reputation has taken a major hit and many of its customers are are switching wallet providers.

Admin update

• If you missed the previous newsletter, you can read it here.
• New here? Join this newsletter for free.

 Hyper-reality

Cool augmented reality simulation:

 Quote of the week

Most mistakes are good actions taken in wrong contexts:

- Quick when you need to be patient; Patient when you need to be quick

- Details when you need the big picture; Big picture when you need details

- Moving when you need to be still; Being still when you need to move

- Angela Jiang

Thanks for reading and have a great weekend.

Cheers,
Slowmad

P.S. If you have any questions or feedback, let me know at: chris[at]digitalslowmad[dot]com

Get future newsletter issues in your inbox: